Budget Implementation Act, 2023, No. 1 (S.C. 2023, c. 26)

• 105 (1) The portion of paragraph 8301(4)(a) of the Regulations before subparagraph (i) is replaced by the following:

  • (a) a contribution (other than an excluded contribution, a contribution described in paragraph 8308(6)(e) or (g) or a contribution made under subsection 147.1(20) of the Act) made under the provision in the year by

• (2) Subsection (1) is deemed to have come into force on January 1, 2021.

• 106 (1) Subsection 8304.1(1) of the Regulations is replaced by the following:

  • 8304.1 (1) For the purpose of subsection 248(1) of the Act, an individual’s total pension adjustment reversal for a calendar year is the total of all amounts each of which is

    • (a) the pension adjustment reversal (in this Part and Part LXXXIV referred to as “PAR”) determined in connection with the individual’s termination in the year from a deferred profit sharing plan or from a benefit provision of a registered pension plan; or

    • (b) the pension adjustment correction determined in respect of the individual for the year under subsection (16).

• (2) Section 8304.1 of the Regulations is amended by adding the following after subsection (15):

  Pension Adjustment Correction

  • (16) If a distribution described in subparagraph 8502(d)(iii) or subsection 147.1(19) of the Act is made in a calendar year in respect of an individual under a money purchase provision, the individual’s pension adjustment correction for the year is the total of all amounts each of which is an amount, in respect of one or more of the 10 years immediately preceding the calendar year (each such year referred to in this subsection as a “retroactive year”), determined by the formula

    A − B − C

    where

    A

    is the total of all amounts each of which was included in determining the individual’s pension credit with respect to an employer for the retroactive year under the provision;

    B

    is the total amount that ought to have been contributed to the provision under the terms of the plan as registered with respect to the individual for the retroactive year; and

    C

    is the amount, if any, by which the total of all amounts each of which is the individual’s pension adjustment for the retroactive year in respect of a participating employer exceeds the lesser of the money purchase limit for the retroactive year and 18% of the individual’s compensation (as defined in subsection 147.1(1) of the Act) from participating employers for the retroactive year.

• (3) Subsections (1) and (2) are deemed to have come into force on January 1, 2021.

• 107 (1) Section 8308 of the Regulations is amended by adding the following after subsection (5.3):

  Conditions – Permitted Corrective Contribution

  • (5.4) If the individual makes a written commitment to the administrator of the plan or to an employer who participates in the plan to make a permitted corrective contribution in accordance with subsection 147.1(20) of the Act in installments, amounts payable by the individual or the employer in respect of the contribution are deemed for the purposes of subsection 8402(4) and the definition net past service pension adjustment in subsection 146(1) of the Act to have been made at the time when the written commitment was made.

• (2) Subsection (1) is deemed to have come into force on January 1, 2021.

• 108 (1) Section 8402 of the Regulations is amended by adding the following after subsection (3):

  • (4) The administrator of a registered pension plan shall file with the Minister an information return in prescribed form within 120 days after a contribution is made to the plan in respect of an individual under subsection 147.1(20) of the Act.

• (2) Subsection (1) is deemed to have come into force on January 1, 2021. However, in its application to a contribution made before this Act receives royal assent, the administrator of the registered pension plan shall not be required to file the prescribed information return prior to the day that is 60 days after the day on which this Act receives royal assent.

• 109 (1) Section 8402.01 of the Regulations is amended by adding the following after subsection (4):

  Pension Adjustment Correction – Employer Reporting

  • (4.1) If a pension adjustment correction under subsection 8304.1(16) is determined for an individual in connection with a distribution from a registered pension plan (other than a pension adjustment correction that is nil), the administrator of the plan shall file with the Minister an information return in prescribed form reporting the pension adjustment correction

    • (a) if the distribution occurs in the first, second or third quarter of a calendar year, on or before the day that is 60 days after the last day of the quarter in which the distribution occurs; and

    • (b) if the distribution occurs in the fourth quarter of a calendar year, before February of the following calendar year.

• (2) Subsection (1) is deemed to have come into force on January 1, 2021. However, in its application to a distribution that is made before this Act receives royal assent, the administrator of the registered pension plan is not required to file the prescribed information return prior to the day that is 60 days after the day on which this Act receives royal assent.

• 110 (1) Subparagraph 8502(d)(v) of the Regulations is replaced by the following:

  • (v) a payment of interest (computed at a rate not exceeding a reasonable rate) in respect of contributions that are returned as described in subparagraph (iii) or (iv),

• (2) The portion of paragraph 8502(i) of the Regulations before subparagraph (i) is replaced by the following:

  • (i) subject to paragraph (i.2), a trustee or other person who holds property in connection with the plan does not borrow money for the purposes of the plan, except where

• (3) Section 8502 of the Regulations is amended by adding the following after paragraph (i.1):

  Borrowing – Defined Benefit Provision

  • (i.2) in the case of a defined benefit provision of the plan (other than an individual pension plan), a trustee or other person who holds property in connection with the provision does not borrow money for the purposes of the provision, except in the circumstances described in paragraph (i) or if, at the time an amount is borrowed

    • (i) the difference between A and B in subparagraph (ii) does not exceed 125% of the actuarial liabilities (determined on the effective date of the plan’s most recent actuarial report) in respect of the provision, and

    • (ii) the total of the borrowed amount and the amount of any other outstanding borrowings in respect of the provision (other than an amount described in paragraph (i)) does not exceed the amount determined by the formula

      0.20 × (A − B)

      where

      A

      is the value of the plan assets in respect of the provision on the first day of the fiscal period of the plan in which the amount is borrowed, and

      B

      is the amount of outstanding borrowings in respect of the provision, determined on the first day of the fiscal period in which the amount is borrowed;

• (4) Subsection (1) is deemed to have come into force on January 1, 2021.

• (5) Subsections (2) and (3) are deemed to have come into force on April 7, 2022.

• 111 (1) Clause 8506(1)(e.2)(iii)(A) of the Regulations is replaced by the following:

  • (A) a benefit described in any of paragraphs (b) to (e) and (i),

• (2) Subsection (1) is deemed to have come into force on January 1, 2020.

SOR/2010-150Electronic Filing and Provision of Information (GST/HST) Regulations

• 112 (1) Paragraph 2(a) of the Electronic Filing and Provision of Information (GST/HST) Regulations is replaced by the following:

  • (a) the person is not a charity;

• (2) Subsection (1) applies in respect of reporting periods that begin after 2023.

Coordinating Amendments

Marginal note:Bill C-46

• 113 (1) Subsections (2) to (4) apply if Bill C-46, introduced in the 1st session of the 44th Parliament and entitled the Cost of Living Relief Act, No. 3 (in this section referred to as the “other Act”), receives royal assent.

• (2) If section 29 and subsections 49(1) and (2) of this Act come into force before section 3 and subsections 4(1) and (2) of the other Act, then that section 3 and those subsections 4(1) and (2) are deemed never to have come into force and are repealed.

• (3) If section 3 and subsections 4(1) and (2) of the other Act come into force on the same day as section 29 and subsections 49(1) and (2) of this Act, then that section 3 is deemed never to have come into force and is repealed and those subsections 4(1) and (2) are deemed to have come into force before those subsections 49(1) and (2).

• (4) If section 3 of the other Act comes into force before section 29 of this Act, then that section 29 is deemed never to have come into force and is repealed.

PART 2GST/HST Measures

R.S., c. E-15Excise Tax Act

• 114 (1) The definition commercial service in subsection 123(1) of the Excise Tax Act is amended by striking out “and” at the end of paragraph (a), by adding “and” at the end of paragraph (b) and by adding the following after paragraph (b):

  • (c) a service that is acquired for consumption, use or supply in the course of, or in connection with, the performance of a mining activity (as defined in subsection 188.2(1)) in Canada; (service commercial)

• (2) The definition financial service in subsection 123(1) of the Act is amended by adding the following after paragraph (r.5):

  • (r.6) a service (other than a prescribed service) that is supplied by a payment card network operator in respect of a payment card network (as those terms are defined in section 3 of the Payment Card Networks Act) where the supply includes the provision of

    • (i) a service in respect of the authorization of a transaction in respect of money, an account, a credit card voucher, a charge card voucher or a financial instrument,

    • (ii) a clearing or settlement service in respect of money, an account, a credit card voucher, a charge card voucher or a financial instrument, or

    • (iii) a service rendered in conjunction with a service referred to in subparagraph (i) or (ii),

• (3) Paragraph (b) of the definition pension entity in subsection 123(1) of the Act is replaced by the following:

  • (b) a corporation referred to in paragraph (b) of the definition pension plan, or

• (4) Subsection (1) is deemed to have come into force on February 5, 2022.

• (5) Subsection (2) applies to a service rendered under an agreement for a supply if

  • (a) any consideration for the supply becomes due after March 28, 2023 or is paid after that day without having become due; or

  • (b) all of the consideration for the supply became due or was paid on or before March 28, 2023, except that, for the purposes of Part IX of the Act, other than Division IV of that Part, subsection (2) does not apply in respect of the service if

    • (i) the supplier did not, on or before March 28, 2023, charge, collect or remit any amount as or on account of tax under Part IX of the Act in respect of the supply, and

    • (ii) the supplier did not, on or before March 28, 2023, charge, collect or remit any amount as or on account of tax under Part IX of the Act in respect of any other supply that is made under the agreement and that includes the provision of a service referred to in paragraph (r.6) of the definition financial service in subsection 123(1) of the Act, as amended by subsection (2).

• (6) Despite section 298 of the Act, the Minister of National Revenue may assess, reassess or make an additional assessment of any amount in respect of paragraph (r.6) of the definition financial service in subsection 123(1) of the Act, as amended by subsection (1), at any time on or before the later of the day that is one year after the day on which the legislation enacting subsection (1) receives royal assent and the last day of the period otherwise allowed under that section for making the assessment, reassessment or additional assessment.